Q4 2023 Eldorado Gold Corp Earnings Call

Okay.

[music].

Operator: Welcome to the Eldorado Gold 2023 Q4 and full year results conference call. As a reminder, all participants are in listen-only mode, and the conference is being recorded. After the presentation, there will be an opportunity to ask questions. To join the question queue, you may press star, then one on your telephone keypad.

Operator: Should you need assistance during the conference call, you may signal an operator by pressing star, then zero. I would now like to turn the conference over to Lynette Gould, Vice President, Investor Relations. Please go ahead, Ms. Cole.

Lynette Gould: Thank you, operator, and good morning everyone. I'd like to welcome you to our fourth quarter and year-end 2023 results conference call. Before we begin, I would like to remind you that we will be making forward-looking statements and referring to non-IFRS measures during the call. Please refer to the cautionary statements included in the presentation and the disclosure on non-IFRS measures and risk factors in our management discussion and analysis.

Thank you for standing by this is the conference operator, welcome to the Eldorado Gold 2023, Q4, and full year results Conference call. As a reminder, all participants are in listen only mode and the conference is being recorded after the presentation there will be an opportunity to ask question.

The join the question queue you May Press Star then one on your telephone keypad.

Lynette Gould: Joining me on the call today are George Burns, President and Chief Executive Officer, Paul Birneyhough, Executive Vice President and Chief Financial Officer, Joe Dick, Executive Vice President and Chief Operating Officer, and Simon Hilley, Executive Vice President, Technical Services and Operations. Our release yesterday details our fourth quarter and year-end 2023 financial and operating results. This should be read in conjunction with our year-end 2023 financial statements and management discussion and analysis, both of which are available on our website. They have also been filed on CDAR Plus and EDGAR.

Should you need assistance during the conference call you May signal, an operator by pressing Star then zero.

Now I'd like to turn the conference over to Lynette Gould Vice President Investor Relations.

Please go ahead Nicole.

Thank you operator, and good morning, everyone I'd like to welcome you to our fourth quarter and year end 2023 results conference call.

Before we begin I would like to remind you that we will be making forward looking statements and referring to non I O R. S measures during the call.

Please refer to the cautionary statements included in the presentation and the disclosure on non I O R. S measures and risk factors in our.

Management's discussion and analysis.

Joining me on the call today, we have George Burns, President and Chief Executive Officer, Paul or Anyhow, Executive Vice President and Chief Financial Officer, Joe <expletive> Executive Vice President and Chief Operating Officer, and Simon Kelly Executive Vice President Technical services and operations.

Lynette Gould: All dollar figures discussed today are U.S. dollars unless otherwise stated. We will be speaking from the slides that accompany this webcast, and you can download a copy of these slides from our website. After their prepared remarks, we will open the call for Q&A. At this time, we will invite... I will now turn the call over to George. Thanks, Lynette, and good morning, everyone.

Our release yesterday details, our fourth quarter, and yearend 2023 financial and operating results there shouldn't be read in conjunction with our year end 2023 financial statements and management's discussion and analysis both of which are available on our website. They are also both been filed on SEDAR.

George Burns: First, we'd like to pass on our condolences to everyone affected by the SSR tragedy in Turkey. Our in-country team provided services to the response efforts, and we await key findings from the investigation. We are pleased to have Paul Furnio, our recently appointed Executive Vice President and Chief Financial Officer, step into the role following Phil Yee's retirement. Paul joined us in 2021 as part of our CFO succession plan and was key in negotiating the project financing on the SCURIES project and worked closely with Phil and the finance team since joining Eldorado. The transition has gone smoothly, and for those who have not yet met Paul, I'm sure over the coming months you will have the opportunity to do so.

And Edgar.

All dollar figures discussed today are U S dollars unless otherwise stated.

He will be speaking to the slides that accompany this webcast and you can download a copy of these slides from our website.

After their prepared remarks, we will open the call for Q&A at this time, we will.

Yeah.

I will now the call over to George.

Thanks, Lynn and good morning, everyone.

First we'd like to pass on our condolences to everyone affected by the SSR tragedy in Turkey.

Our in country team provided services to the response efforts and we will keep findings from the investigation.

We were pleased to help O'neil, our recently appointed executive Vice President and Chief Financial Officer stepped into the role following <unk> retirement.

George Burns: I would also like to take this opportunity to acknowledge Joe Dick because this will be his last formal conference call with us. At the end of March, he will retire his role as COO and move into a consultant role to support us in delivering the SCURIES project. Joe, I would like to thank you for everything you've contributed to the organization. And, on behalf of everyone at Eldorado, we wish you all the best in your semi-retirement. As Joe moves into this new role, we have welcomed Lo Smith as the Executive Vice President, Development, Greece.

Paul joined US in 2021, as part of our CFO succession plan and mosquito negotiating the project financing on this project.

Ultimately with Phil and the finance team since joining El Dorado.

This transition has gone smoothly and for those who have not yet met Paul I'm sure over the coming months, you will have the opportunity to do so.

I would also like to take this opportunity to acknowledge Joe <expletive>.

This will be his last formal conference call with us.

At the end of March your entire his role as COO and move into a consulting role to support us in delivering a storage project.

George Burns: Lo is responsible for our Greek assets, including Scurries and Olympias. You will join us on our first border call for 2024 in April to review the Greek assets. What brings to the role over 30 years of international experience in the industry?

Joe I would like to thank you for everything you've contributed to the organization and on behalf of everyone at El Dorado, We wish you all the best in your semi retirement.

But Joe moves into this new role we are welcome Bob Smith Executive Vice President development race.

George Burns: We are pleased to have him join Eldorado. Here is the outline for today's call. I'll provide a brief overview of Q4 and 2023 results and highlights, updated 2024 production and cost guidance, and our four-year production outlook. I will then pass the call over to Paul to go through our financials, and then Joe and Simon to review our operational performance. Then we'll open the call to questions from our analysts.

What was responsible for our Greek assets, including scurried at Olympias.

He will join us on our first quarter call for 2024 and April to review the Greek assets.

Well it brings down the roll over 30 years of international experience in the industry.

We were pleased to have him joined Eldorado.

Here's the outline for today's call.

I'll provide a brief overview of Q4 and 2023 results and highlights.

Updated 2020 for production and cost guidance and our four year production outlook.

George Burns: Turning the slide forward, 2023 was a successful year at Eldorado, marked by many accomplishments. We delivered increasing production while lowering our cost profile over 2022, resulting in a very strong financial year. This accomplishment demonstrates our team's dedication and hard work.

I will then pass the call over to Paul to go through the financials and then Joe on Simon to review our operational performance.

Then we will open the call to questions from our analysts.

Turning to slide for 2023 was a successful year of Eldorado marked with many accomplishments.

We delivered increasing production, while lowering our cost profile over 2022, resulting in a very strong financial year.

George Burns: Q4 was the strongest quarter of the year with safe production of 143,166 ounces. We finished the year with coal production of 485,139 ounces, in line with our guidance range and a 7% increase over 2022. Production benefited from Olympia's infrastructure and productivity improvements, and a kiss-the-dub from our upgraded materials handling systems and the commissioning of the North Heap Leach Pad. On the cost side, our cast costs and our all-in sustaining costs decreased by 6% and 4%, respectively, compared to 2022 in an environment where the industry cost base is rising. We saw slightly lower unit costs for heat consumables, including energy and fuel, and lower sustaining capital expenditures. In Turkey A, we also benefited from the depreciating Lyra, which more than offset inflation.

This accomplishment demonstrates our team's dedication and hard work.

The fourth quarter was the strongest quarter of the year was safe production of 143166 ounces.

We finished the year with pulp production of 485139 ounces in line with our guidance range and a 7% increase over 2022.

Production benefited from Olympias infrastructure and productivity improvements from our upgraded materials handling systems and the commissioning of the north heap Leach pad.

On the cost side, our cash cost and our all in sustaining costs decreased by 6% and 4%, respectively compared to 2022, and an environment, where the industry cost base is rising.

We saw slightly lower unit costs for consumables, including energy and fuel.

Lower sustaining capital expenditures.

Also in Turkey, we benefited from the depreciating euro that more than offset inflation.

George Burns: In addition, our continuous improvement initiatives across the sites also contributed to declining costs, for full year 2023 cast costs and all in sustaining costs. We're in line with our guidance ranges we issued in October. Paul will touch on the cost in more detail later in the call. Turning to slide 5, in the fourth quarter, we recorded one lost time injury with a frequency rate of 0.42, which was consistent with the LTIFR in Q4 2020.

In addition, our continuous improvement initiatives across the sites also contributed to declining costs.

For full year, 2023, cash cost and all in sustaining cost.

In line with our guidance ranges, we issued in October.

I'll touch on the cost in more detail later in the call.

Turning to slide five in the fourth quarter. We recorded one lost time injury with a frequency rate of 0.42, which was consistent with the LTI AFR in Q4 2022.

In 2023 E. L. T. Ifr was <unk> six five is 45% improvement over $1, one nine and 2022.

George Burns: In 2023, the LTIFR was 0.65, a 45% improvement over 1.19 in 2022. While we are proud of our safety performance and our employees' commitment to safe operations, we know there's a lot more to be done. Our safety and health journey will continue in 2024 with a focus on preventing high-potential incidents and further empowerment of our employees to promote a positive health and safety culture. On sustainability, we take pride in our consistently strong performance and are pleased to have been recently recognized for our continued efforts. We were ranked first in the materials sector and 27th overall in the Globe and Mail's 2023 board games, which ranked Canadian corporate boards on the S&P and In addition, at the Resourcing Tomorrow Conference in London, we took home the Project Financing of the Year Award for Sturris Project Finance. We also received an honorable mention for ESG Producer of the Year. Moving to slide six.

While we are proud of our safety performance and our employees' commitment to safe operations.

There's a lot more to be done.

Safety and health journey will continue in 2024 with a focus on preventing high potential incidents and further improvement of our employees to promote a positive health and safety culture.

On sustainability, we take pride in our consistently strong performance.

Pleased to have been recently recognized for our continued efforts.

We were ranked first in the materials sector and 27th overall and the Goldman Males 2023 Board games, which ranked Canadian corporate boards on the S&P <unk> composite index.

The quality of their governance practice and disclosure.

In addition at the Resourcing Tomorrow Conference in London, We took calling the project financing of the year award for the storage project financing.

We also received honorable mention for ESG producer over here.

Moving to slide six in conjunction with our financial release yesterday, we published our 2020 for guidance and for your production outlook.

George Burns: In conjunction with our financial release yesterday, we published our 2024 guidance and four-year production outlook. Looking forward to 2024, we expect a 9% increase in gold production over 2023, with gold production expected to be between 505 and 555,000 ounces. The increase in gold production over 2023 will be primarily driven by higher expected production at Kisadah and Olympias, following the productivity improvements that were implemented last year. As in previous years, production is expected to be second-half way to... Production in Q1 and Q2 of this year is expected to be lower than Q4 2023 as a result of winter conditions at Kisadah and planned ore grade variability at Kisada Total cast costs are expected to be between $840 and $940 per ounce sold.

Looking forward towards 2024, we expect a 9% increase in gold production over 2023.

Full production expected to be between 505 and 555000 ounces.

The increase in gold production over 2023 will be primarily driven by higher expected production.

In olympias following the productive productivity improvements that were implemented last year.

As in previous years production is expected to be second half weighted.

Production in Q1, and Q2 of this year is expected to be lower than Q4 2023, as a result of winter conditions at <unk> and.

And plan, our grade variability and kill Saddam Hallmark and their computer room.

Total cash costs are expected to be between 840 and $943 per ounce sold.

All in sustaining costs are expected to be between 1190 and $1290 per ounce sold.

George Burns: All-in sustaining costs are expected to be between $1,190 and $1,290 per ounce sold. Both total cast costs and all-in sustaining costs are expected to be in line compared to 2023. Sustaining capital in our operations is expected to be between $135 million and $160 million. The increase over 2023 is primarily the result of an increase at Lamarck for underground development and tailings storage facility upgrades, and at Olympias for underground development and infrastructure. Rove Capital or Operating Mines is expected to be between $122 and $144 million, which is an increase over 2023, primarily the result of an increase at Lamarck for the planned or mock bolt sample development and at Olympias, as we take a phased approach to increasing throughput to 650,000 tons per annum, which is expected in 2026. Growth capital at Scurries is expected to be $375 to $425 million.

Both total cash costs and all in sustaining costs are expected to be in line compared to 2023.

Sustaining capital at our operations is expected to be between 135 out of $160 million the.

The increase over 2023 and is primarily the result of an increase of a mark for underground development and tailing storage facility upgrades and olympias for underground development and infrastructure.

Roth capital or operating mines is expected to be between $120 million to $144 million, which has increased over 2023, primarily the result of an increase a mark for the planned sample.

Sample development and at the Lumpiness as we take a phased approach to increasing throughput to 650000 tonnes per annum, which is expected in 2026.

Growth capital at <unk> is expected to be 375 to 425 million.

George Burns: History's capital has significantly increased over 2023 as we are in the peak of construction. However, due to delays in finalizing key contracts, and some of the 2023 spend was moved into 2024, as we previously indicated. Our four-year outlook is a compelling story of near-term, high-quality production growth. Our primary growth engine is Scurries, which is expected to be commissioning in the third quarter of next year. Our gold production is expected to increase 45% from 2023 through 2027. In addition to the gold production, copper will become a significant component of Eldorado's overall production and revenue profile.

<unk> capital has significantly increased over 2023 as we are in the peak of the construction.

Due to delays in finalizing key contracts and some of the 'twenty two 'twenty three spend was moved into 2024 and as we previously indicated.

Our four year outlook as a compelling story of near term high quality production growth.

The primary growth engine is stories, which is expected to be commissioning in the third quarter of next year.

Our gold production is expected to increase 45% from 2023 through 2027.

In addition to the Gulf production copper becomes a significant component of Eldorado's overall production and revenue profile.

George Burns: Within our guidance this year, we have included copper production at Scurries, starting in 2025. Moving to slide 7, we announced in yesterday's release a 9% or $75 million increase in the capital estimate at SCRI. A higher capital estimate was the result of increased labor costs.

Within our guidance. This year, we have included the copper production that studies starting in 2025.

Moving to slide seven we announced in yesterday's release, our 9% or $75 million increase in the capital estimate at stories.

Higher capital estimate was a result of increased labor costs.

George Burns: During 2023, negotiated contracts finalized were consistent with the feasibility study. The recent bids in 2024 that are being finalized or will be finalized in the first half of 2024 are associated with the mill facility and the tailings filtration plant that are coming in above the feasibility study as the largest factor is higher labor rates for trade workers and, to a lesser degree, slightly lower productivity assumed and, to an even lesser degree, an increase in quantity of work being recognized from detailed engineering versus the feasibility study engineering. These new market and engineering realities are being included in the remaining contracts still being finalized. As a result, we believe the updated cost estimate is largely de-risked in terms of labor cost, procurement risk, and engineering risk.

During 2023 negotiated contracts finalized work consistent with the feasibility study.

The recent bids in 2024 that are being finalized or will be finalized in the first half of 2024 are associated with the mill facility.

And the tailings filtration plant.

Or coming in above the feasibility study estimate.

The largest factor is higher labor rates for trade workers and to a lesser degree slightly lower productivity assumed into an even lesser degree an increase in quantity of work being recognized from detailed engineering versus the feasibility study engineering.

These new market and engineering realities are being included in the remaining contracts still being finalized.

As a result, we believe the updated cost estimate is largely de risked in terms of labor cost procurement risk and engineering risk. We also believe this modest 9% increase in capital cost estimate in light of the global inflationary pressure since December 2021 feasibility study.

George Burns: We also believe this modest 9% increase in the capital cost estimate in light of the global inflationary pressure since the December 2021 feasibility study is a positive outcome. Our focus as we finalize these remaining contracts turns to mobilization of contractors and safe execution of the work to deliver the start of commissioning in Q3 2025 and operational readiness to deliver commercial production by the end of 2025. With solid project financing and a robust balance sheet, we remain fully funded to complete the construction scurries.

As a positive outcome.

Our focus as we finalize these remaining contracts turns to mobilization of contractors and safe execution of the work to deliver startup commissioning in Q3, 2025 and operational readiness to deliver commercial production by the end of 2025.

The solid project financing and a robust balance sheet, we remain fully funded to complete the construction series.

Timely invested and diligently and negotiating these key contracts has increased our execution confidence with a modest effect on the production schedule.

Paul: The time we invested in diligently negotiating these key contracts has increased our execution confidence with a modest effect on the production schedule. First production of the high-quality copper-gold concentrate is now expected in Q3 of 2025 from prior guidance of mid-2025, and we are on track for commercial production at the end of 2025. The back-end weighted operations ramp-up curve, we have lowered the SCURI's 2025 gold production range to between 50 and 60,000 ounces, pre-production ounces, from the prior guidance of 80,000 to 90,000 ounces. In 2025, we also have guided on copper production and expect to produce between 15 and 20 million pounds that year. For the subsequent years, 2026 and 2027, we are maintaining the previous gold production guidance ranges and have provided copper production. We are assessing our plans with the goal of increasing our 2026 production profile at SCURI. I'll stop there and turn the call over to Paul for a review of our financial results. Thank you, George, and good morning, everyone.

First production of the high quality copper gold concentrate is now expected in Q3 of 2025 from prior guidance of mid 2025, and we remain on track for commercial.

At the end of 2025.

But the backend weighted operations ramp up curve, we have lowered the series 2025 gold production range to between 50, and 60000 ounces of preproduction ounces from.

From the prior guidance of 80 to 90000 ounces.

In 2025, we also have guided on copper production and expect to produce between 15 and 28 million pounds.

At year.

So the subsequent years 'twenty 'twenty six and 2027, we're maintaining the previous pulp production guidance ranges and have provided copper production.

We are assessing our plans with the goal of increasing our 2026 production profile outskirts.

I'll stop there and turn the call over to Paul for a review of our financial the financial results.

Thank you George and good morning, everyone.

Paul: Slide 8 provides a summary of our fourth quarter and full year results. 2023 was a strong year for us. As George mentioned, we delivered in line with our production guidance and in line with our guidance range on operating costs. Increasing production and lowering costs compared to 2022 have resulted in strong financial results for the full year. Eldorado reported net earnings attributable to shareholders from continuing operations of $92 million, or $0.45 per share, in the fourth quarter, positively impacted by higher revenue and a higher income tax recovery over the comparative period in 2022.

Slide eight provides a summary of our fourth quarter and full year results.

2023 was a strong year for us as George mentioned, we delivered in line with our production guidance and in line with our guidance range on operating costs.

Increasing production and lowering costs compared to 2022 have resulted in strong financial results for the full year.

El Dorado reported net earnings attributable to shareholders from continuing operations of $92 million or <unk> 45 per share in the fourth quarter.

Positively impacted by higher revenue and a higher income tax recovery over the comparative period in 2022.

Paul: For the full year, net earnings attributable to shareholders from continuing operations were $106 million, or $0.55 per share, compared to a net loss of $49 million, or $0.27 loss per share, in 2022. Net earnings increased in 2023 primarily due to higher revenue and lower mine standby costs, lower write-downs of assets, and lower income taxes. After adjusting for one-time non-recurring items, adjusted net earnings were $49 million, or $0.24 per share for the quarter, and $111 million, or $0.57 per share for the year. Within Adjusted Net Income, we've reversed the one-off $59 million deferred income tax recovery due to a mandatory Turkey A hyperinflationary tax basis adjustment. The Deferred Income Tax Recovery applied to all of our non-monetary Turkey A balance sheet items, free cash flow in the quarter with $29 million, or $82 million excluding capital investment in the Scurrius project. For the full year, free cash flow was negative $47 million, or $113 million positive, excluding the Scurrius project.

For the full year net earnings attributable to shareholders from continuing operations was $106 million, while 55 per share compared to a net loss of $49 million or 27 cents loss per share in 2022.

Net earnings increased in 2023, primarily due to higher revenue and lower mine standby costs lower write downs of assets and lower income taxes.

After adjusting for onetime nonrecurring items adjusted net earnings were $49 million or <unk> 24 per share for the quarter.

$111 million or <unk> 57 per share for the year.

Within adjusted net income we've reversed the one off $69 million deferred income tax recovery due to Amanda trade, Turkey, a hyper inflationary tax basis adjustment.

Income tax recovery applied to all of our non monetary Turkey, a balance sheet items.

Our free cash flow in the quarter was $29 million or.

While $82 million, excluding capital investment in this curious project.

For the full year free cash flow was negative $47 million or $113 million positive excluding the Sky Ranch project.

Paul: A significant improvement over 2022, which was negative $69 million. Cash flow generated by operating activities before changes in working capital in the quarter was $138 million, and for 2023 was $411 million, compared to $240 million in 2021. Fourth quarter cash operating cost was $716 per ounce sold, and all in sustaining costs was $1,207 per ounce sold. For the full year on a per ounce sold basis, cash operating costs were $743, total cash costs were $850, and all in sustaining costs were $1,220 per ounce.

Significant improvement over 2022, which was negative $69 million.

Cash flow generated by operating activities before changes in working capital in the quarter was 165, sorry $138 million.

And for 2023 was $411 million.

Impaired to $240 million in 2022.

Fourth quarter cash operating cost was $716 per ounce sold and all in sustaining cost was $1207 per ounce sold.

For the full year on a per ounce sold basis cash operating costs were $743 total cash cost was $850 and all in sustaining cost was $1220 per ounce.

Paul: Our costs decreased compared to the prior year as a result of higher production and slightly lower unit costs for key consumables, including energy and fuel. Capital expenditures were $137 million in the fourth quarter, including investment in growth projects at Kisledag focused on the waste stripping, North Heat leach pad, and upgraded materials handling systems, and at SCURIES, where we continue to advance construction and procurement for the project. Overall, 2023 capital expenditures were $411 million. Current tax expense of $22 million for the fourth quarter increased from $10 million compared to the same period in 2020. Current tax expense totaled $86 million for the full year, an increase from $70 million in 2020. The increase in 2023 was primarily related to operations in Turkey A. The increase reflects higher sales volumes combined with a tax rate increase in Turkey A from 20% to 25% that was enacted on July the 15th and was retroactive to the beginning of the year.

Costs decreased compared to the prior year as a result of higher production and slightly lower unit costs, the key consumables, including energy and field.

Capital expenditures were $137 million in the fourth quarter, including investment in growth projects at <unk> focused on the waste stripping north heap Leach pad graded.

Handling systems.

And as Gary's, while we continued to advance construction and procurement for the project.

Overall 2023 capital expenditures were $411 million.

Current tax expense of $22 million for the fourth quarter increased from $10 million compared to the same period in 2022.

Current tax expense totaled $86 million for the full year, an increase from $70 million in 2022.

The increase in 2023 was primarily related to the operations in Turkey.

The increase reflects higher sales volumes combined with a tax rate increase in Turkey from 20% to 25% that was enacted on July the 15th that was retroactive to the beginning of the year.

Paul: This was partially offset by the Turkish investment tax credit. Third, income tax recoveries of $68 million in the fourth quarter and $28 million for the full year, compared to recoveries of $34 million and $8.5 million, respectively, in 2022. Turning to slide nine, our financial position remains robust as we move into 2024. We ended the year with total liquidity of $652 million, including $542 million of cash, cash equivalents, and term deposits and $110 million of available capacity on our revolving credit facility.

This was partially offset by Turkish investment tax credits.

The income tax recoveries of $68 million in the fourth quarter and $28 million for the full year compared to recoveries of $34 million and $8 $5 million respectively in 2022.

Turning to slide nine our financial position remains robust as we move into 2024.

We ended the year with total liquidity of $652 million.

Including $542 million of cash cash equivalents and time deposits and $110 million of available capacity.

<unk> credit facility.

Paul: We continue to focus on maintaining a solid financial position, which provides flexibility to respond to opportunities and fund our growth strategy to unlock value across our global operations. With that, I'll now turn the call over to Joe to go through the operational highlights. Thanks, Paul, and good morning, starting on slide 10 at Scorius. We have made significant progress since restarting construction, and activity has continued to ramp up on site with project progress at 38% at the end of December 2023. Overall project progress stands at 70%, including work completed before putting the project into care and maintenance in 2017. Since giving the last update, detailed engineering has progressed to 61% from 56%, and procurement is 82% complete, up from 73%. Mobilization of the Earthworks Contractor for the Embankment Facility within the Integrated Extractive Waste Management Facility. The IEWMF started in the second quarter along with critical underground power service updates.

We continue to focus on maintaining a solid financial position, which provides flexibility to respond to opportunities.

To fund our growth strategy to unlock value across our global business.

With that I'll now turn the call over to Joe to go through the operational highlights.

Thanks, Paul and good morning.

Starting on slide 10, its score yes.

We have made significant progress since restarting construction activity.

Activity has continued to ramp up onsite with project progress at 38% at the end of December 2023.

Overall project progress stands at 70%, including work completed before putting the project into care and maintenance in 2017.

So it's giving the last update detailed engineering has progressed to 61% from 56% and procurement is 82% complete up from 73%.

Mobilization of the earthworks contractor for embankment facility within the integrated extractive waste management facility.

The I D E WMA up started in the second quarter, along with critical underground power service update.

Joe: Additionally, the construction team made positive headway on the Crusher Building, Mill and Flotation Building, and underground development. We have some more detailed photos to share in the coming slides. Moving to slide 11, as we continue to ramp up construction activities, our 2024 capital is expected to be between $375 and $425 million. The Capitol will be focused on continuing to advance construction of the major earthworks, including Hall Roads.

Additionally, the construction team made positive headway on the Crusher building mill and flotation building an underground development.

We have some more detailed photos to share in the coming slides.

Moving to slide 11, as we continue to ramp up construction activities. Our 2024 capital is expected to be between 375 and $425 million.

The capital will be focused on continuing to advance construction of the major Earth works, including haul roads.

Joe: IEWMF Construction, Low Grade Stockpile, Water Management and Process Facilities, and the Crusher and Filter Buildings. In addition, work will focus on underground development to support the test doping program scheduled for 2025. Mechanical, piping, and electrical installations will progress in process and infrastructure areas. On the critical path is the filter plant, which continues to advance with the piling work having commenced. We expect to award the filter building contract early in Q2. The contract will include the building structure, assembly of equipment within the building, including air compressors, conveyors, filter presses, and other ancillary equipment in addition to the piping and electrical work. The filter plates arrived on site in January with the remaining components, assemblies, and fabricated frames expected to ship in the second quarter.

E. W. M F construction low grade stockpile water management and process facilities, and the crusher and filter buildings.

In addition work with focus on underground development to support the test Stoping program scheduled for 2025.

Mechanical piping and electrical installation school progressing.

Yeah.

And process and infrastructure areas.

On the critical path is the filter plant, which continues to advance with the piling work having commenced we expect to award the filter building contract early in Q2 with the.

The contract will include the building structure.

Assembly of equipment within the building, including Air compressors conveyors built.

Filter presses and other ancillary equipment in addition to the piping and electrical work.

The filter plates arrived on site in January with the remaining components assemblies and fabricated frames expected to ship in the second quarter.

Pre assembly is expected to start following delivery.

Work for the mill.

Rotation building is in progress with commissioning on overhead cranes.

Installation of construction lighting and scaffolding and the commencement of structural steel work.

Mechanical piping and electrical work for the process plant are mobilizing with work commencing this quarter.

By the end of 2024, we expect to have completed the.

Joe: Pre-assembly is expected to start following delivery. Work for the mill flotation building is in progress with commissioning of overhead cranes, installation of construction lighting and scaffolding, and the commencement of structural steel work. Mechanical, piping, and electrical work for the process plant is mobilizing, with work commencing this quarter. By the end of 2024, we expect to have completed the IEWMF Cofferdam and significantly advanced the IEWMF Earthworks, Water Management Facilities, and the Process and Filter Plant. The next set of slides shows how much work is already underway on three critical areas. Since we hosted a contingent of analysts and investors on the site in October, you may be impressed by how fast things have advanced through the winter months, specifically on the Crusher Plant Foundation and preparation of the Filter Plant area.

I E W. A M F Coffer dam and significantly advanced the <unk> earthworks water management facilities and the process and filter plants.

The next set of slides show how much work is already underway on three critical areas.

Since we hosted a contingent of analysts and investors on the site in October you may be impressed by how fast things have advanced through the winter months, specifically on the Crusher plant Foundation and preparation of the filter plant area.

Okay.

On slide 12, the top photo gives you a good view of the amount of pre stripping that has already been completed in the pit.

In the bottom photo you can see the trucks on site that are employed on the open pit pre stripping to support construction of the haul roads and water management pond.

On Slide 13, you can see the area for the Crusher building.

Piles have been driven and poured in the next stage of civil construction has begun.

Joe: On slide 12, the top photo gives you a good view of the amount of pre-stripping that has already been completed in the pit. In the bottom photo, you can see the trucks on site that are employed on the open pit pre-stripping to support the construction of the haul roads and water management ponds. On slide 13, you can see the area for the Crusher Building.

Over at the filter plant on slide 14. This shows the significant amount of excavation work that has been done with the piling work underway.

Shown on slide 15, or the first four company owned 45 10.

Cat 745 trucks. These trucks will be used <unk> as an operation to build the live stuff, but we required on the dry stack and banquet.

Joe: The piles have been driven and poured, and the next stage of civil construction has begun. Over at the filter plant, on slide 14, this shows the significant amount of excavation work that has been done with the piling work underway. Shown on slide 15 are the first four company-owned 45-ton CAT 745 trucks.

During construction of the civil works. These trucks will be used as part of an integrated fleet with the earthworks Kahn with the earthworks contractor.

For construction of that I E WNS facilities.

We expect to take delivery of 15 additional trucks through the end of Q2 2024.

The photo on the right shows the first phase of the underground development advancing the west decline and access to the test stopes.

Joe: These trucks will be used once Scorious is in operation to build the lifts that will be required on the dry stack and bank. During construction of the Civil Works, these trucks will be used as part of an integrated fleet with the Earthworks contractor for the construction of the IEWMF facilities. We expect to take delivery of 15 additional trucks through the end of Q2 2024. The photo on the right shows the first phase of the underground development, advancing the west decline and access to the test stopes. The second underground development contract proposals are in the final evaluation stage, and awarding of the contract is planned for the second quarter. This contract includes test work, as well as additional development and services work to support the development phase one of the underground mine. We expect to complete about 2200 meters of underground development by the end of 2024. As a reminder, it is expected that Aquarius will be mined predominantly via open pit for the first nine years in conjunction with the ramp-up of the underground.

Our second underground development contract proposals are in the final evaluation stage and awarding of the contract as planned for the second quarter.

This contract includes test type work as well as additional development and services work to support the development phase one of the underground mine.

We expect to complete about 2200 meters of underground development by the end of 2024.

As a reminder is it expected that Korea will be mined predominantly via open pit for the first nine years in conjunction with the ramp up of the underground.

We look forward to providing updates as progress continues.

I'll turn it over to Simon for a review of operations.

Thanks, Joe.

Starting with <unk> on slide 16.

You see that fourth quarter production was 46291 answers.

Cash operating cost of $623 per ounce sold.

Which represented 24% decrease in production on a similar cash operating costs compared to the prior quarter.

Production during the quarter was driven by continued optimization of the materials handling systems.

And the commissioning of the North heap Leach pad, which has increased the ore tons placed an increased irrigation flow rates.

Simon: We look forward to providing updates as progress continues. I'll turn it over to Simon for a review of operations. Thanks Joe. Starting in Tech EA on slide 16, and Kishida.

ROE in 2023 production was below guidance due to slower than expected inventory drawdown at the SaaS heap Leach pad.

Cash operating costs were significantly lower than guidance as a result of below prices of fuel and electricity.

Simon: Fourth quarter production was 46,291 amps at cash operating costs of $623 per ounce sold, which represents a 24% increase in production on a similar cash operating cost compared to the prior quarter. Production during the quarter was driven by continued optimization of the materials handling system and the commissioning of the Northeast Bleach Pad, which has increased the ore tons placed and increased the irrigation flow rate. Overall, in 2020, free production was below guidance due to a slower than expected inventory drawdown of the Southeast Bleach Pad. However, cash operating costs were significantly lower than guidance as a result of the lower prices of fuel and electricity.

Looking ahead to 2024 gives you that production guidance is between 100 and 195000 ounces of gold to a chain desk issue that is expected to mine in place on leach pad and approximately $13 and change.

7 million tons of coal at an average gold grade of between seven and eight grants at the time.

The production range has been revised from the guidance issued in 2023 and this is primarily due to inventory buildup within the oil stacked.

In the Leach facility following the residual impacts of the high precipitation events in 2023.

Continuing to optimize our unbound, Oklahoma raised some prices.

Stacking processes to improve quality and consistency of effect at all.

Along with five consecutive ease to enhance inventory drawdown.

Simon: Looking ahead to 2024, Kishida's production guidance is between 180 and 195,000 ounces of gold. To achieve this, Kishida is expected to mine and place, on the leach pad, approximately 13.2 to 13.7 million tons of oil at an average gold grade of between 0.7 and 0.8 grams per ton. The production range has been revised from the guidance issued in 2023, and this is primarily due to inventory build-up within the oil state in the Leach Facility following the residual impacts of the high precipitation event of 2023. We continue to optimize our unbelt agglomeration process and stacking processes to improve quality and consistency of the stacked ore, along with focused activities to enhance inventory drawdown. On slide 17, at FM2Crew, fourth-quarter gold production was 22,374 ounces at a cash operating cost of $816 per ounce sold.

On slide 17, Edison Chu Cree fourth quarter Gold production was 22374 ounces at a cash operating cost of $816.

Solid.

Gold production throughput and average gold grade of different J crew right in line with plan for the quarter.

Overall, 2023 production and cash costs were in line with guidance.

For the year ahead different take rates production is between 75085 ounces of gold and decided expected to prices of approximately 530 to 550000 tonnes of ore at an average gold grade at between five and five five grams a tonne.

Production is expected to be relatively consistent quarter over quarter.

The first quarter expected to be the lowest.

And now moving to the La Mac complex on slide 18.

Atlanta, the Mac complex delivered record gold production in the fourth quarter and for the year.

Oil production was 56619 ounces.

29% increase over the prior quarter driven by productivity improvements in the triangle mined and higher grade.

Which allowed the musical format capacity.

Cash operating costs were $590 per ounce sold.

Simon: Gold production, throughput, and average gold grade at FM2Crew were in line with planned for the quarter. Overall, 2023 production and cash costs were in line with guidance. For the year ahead, FN2 cruise production is between 75,000 and 85,000 ounces of gold, and the site is expected to process approximately 530,000 to 550,000 tonnes of ore at an average gold grade of between 5 and 5.5 grams per tonne. Production is expected to be relatively consistent quarter over quarter. The first quarter is expected to be the lowest. Now, moving to the LOMAC complex on slide 8. The LOMAC complex delivered record gold production, both in the fourth quarter and for the year.

Additionally in 2023.

We announced the conversion of a portion of the inferred resources into indicated resources at the <unk> deposit.

During 2024, we will continue to advance infill drilling program targeting yeah, but two thirds of the deposits and we remain on track to take the bulk sample.

The pre feasibility study and then Nancy Oh Man, you know grow reserves by the end of 2024.

For the year, but Max production guidance is between 175100 <unk>.

19 CASM.

ZIP code and is expected to cheat decided is expected to mine and process approximately 870000 to 910000 tonnes of ore at an average gold grade between six three and six nine grams per tonne.

The production range has been widened slightly compared to the guidance issued in 2023 to reflect an updated mine plan that supports mine sequencing optionality and optimization SG&A lower and the deposit.

Simon: The fourth quarter gold production was 56,619 ounces. A 29% increase over the prior quarter driven by productivity improvements in the triangle mine and higher grades, which allowed the mill to perform at capacity. Our shop opening costs were $580 per ounce sold. Additionally, in 2023 We announce the conversion of a portion of the inferred resources into indicated resources at the ULMAC deposit. During 2024, we will continue to advance our field drilling program, targeting the upper two-thirds of the ORMAC deposits, and we remain on track to take the bowl sample, lead a pre-feasibility study, and announce the OMAC inaugural reserves by the end of 2024, for the EIA Lamex Production Guide, between $175,000 and $190,000 ounces of gold. The site is expected to mine and process approximately 870,000 to 910,000 tonnes of ore at an average gold grade between 6.3 and 6.8 grams per tonne.

I'll hand, the call back to Jai to review the fourth quarter results for Olympias.

Thanks Simon.

Moving to Olympias on slide 19.

The mine delivered record annual production in the mail delivered record throughput by leveraging operating initiatives implemented during the year.

Fourth quarter Gold production was 17882 ounces and cash operating costs were $1224 per ounce sold.

Overall 2023 production was in line with guidance.

Costs were higher than expected because of a delay in the completion of the bulk of emotion and ventilation projects scheduled for early Q1 2023 completion.

And and were commissioned mid year.

That affected mine plan sequence and delayed lower mine development, both of which contributed to the byproduct.

And grade variances, which in turn affected unit costs.

At Olympias in 2024, we expect to see continued improvement as we advance the underground development and increased metal production from the plant so <unk>.

Production is expected to be relatively steady through the year delivering between 75080 5000 ounces of gold.

Simon: The production range has been widened slightly compared to the guidance issued in 2023 to reflect an updated mine plan that supports mine sequencing optionality and optimisation as we move lower in the deposit. I'll hand the call back to Joe to review the fourth-quarter results for Olympia. Thanks, Simon. Moving to Olympias on slide 19. The mine delivered record annual production, and the mill delivered record throughput by leveraging operating initiatives implemented during the year. Fourth quarter gold production was 17,882 ounces, and cash operating costs were $1,224 per ounce sold.

Total cash costs are expected to benefit from the increased byproduct metal production within the flat zone, which is expected to result in higher byproduct credits driving down the operating costs.

Total cash costs are expected to be between 980.

In 1080.

Per ounce sold and all in sustaining costs are expected to be between.

280, and <unk> hundred $80 per ounce sold.

Timing of byproduct shipments in subsequent recognition of sales per.

Quarter May result in quarter over quarter total cask cost variability over the course of the year.

Joe: Overall, 2023 production was in line with guidance, but costs were higher than expected because of a delay in the completion of the bulk emulsion and ventilation projects scheduled for early Q1 2023 completion and were commissioned mid-year, which affected the mine plan sequence and delayed lower mine development, both of which contributed to byproduct and grade variances, which in turn affected unit costs. At Olympia in 2024, we expect to see continued improvement as we advance the underground development and increase metal production from the flat zone. Production is expected to be relatively steady through the year, delivering between 75,000 and 85,000 ounces of gold. Total cash costs are expected to benefit from the increased by-product metal production within the flat zone, which is expected to result in higher by-product credits, driving down operating costs. Total cash costs are expected to be between $900,000 and $80,000 and $1,080 per ounce sold, and all in sustaining costs are expected to be between. $1,280 and $1,380 per ounce sold.

I'll stop there and turn it back to George for closing remarks.

Okay.

Thanks team.

In summary, 2023 was a fantastic year operationally and financially and I would like to acknowledge the dedication and hard work of our teams across the sites.

We were able to deliver increasing production getting annual production records at both <unk> and Olympias Paul.

Lowering our cost profile over 2022, a testament to the strength and commitment across the organization.

We are in solid shape with a lot of momentum going forward.

Fully funded to execute on stories and bring into production next year.

Additionally, each of our sites have ongoing continuous improvement initiatives with the asset is expected to provide growing safe production year over year and a disciplined management. In addition to stories, bringing on high quality copper gold production, we expect to generate significant free cash flow generation.

It's an amazing time to be at El Dorado.

Thank you for your time I will now turn it over to the operator for questions from our analysts.

Thank you Joanne.

I joined the question queue. You May Press Star then one on your telephone keypad you been here John acknowledging your request.

You're using a speakerphone please pick up your handset before pressing any key.

Cause Italia a question. Please press Star then two.

Our first question comes from Cosmos <unk> with CIBC. Please go ahead.

Joe: Timing of byproduct shipments and subsequent recognition of sales per quarter may result in quarter over quarter total cash cost variability over the course of the year. I'll stop there and turn it back to George for closing remarks. Thanks, team. In summary, 2023 was a fantastic year operationally and financially, and I would like to acknowledge the dedication and hard work of our teams across the site. We were able to deliver increasing production, setting annual production records at both Lamarck and Olympias, while lowering our cost profile over 2022, a testament to the strength and commitment across the organization. We are in solid shape with a lot of momentum going forward. We are fully funded to execute on SCURIs and bring it into production next year. Additionally, each of our sites has ongoing continuous improvement initiatives, with the assets expected to provide growing, safe production year-over-year, and a disciplined management in addition to SCURIs bringing on high-quality copper and gold production. We expect to generate significant free cast flow generation. It's an amazing time to be at Eldorado.

Thanks, George and Simon Congrats Paul and all the best John.

Maybe my first question is on scary, yes, the Capex increase.

As you mentioned a lot of it is due to labor cost.

A part of it is due to productivity and certainly productivity was appointed a discussion where we're on site back in October.

Can you give us a bit more color in terms of productivity what kind of assumption did you make previously.

What kind of assumptions are you, making today in terms of productivity maybe is it relative to say, Turkey on Canada or other parts of the world as well.

Okay.

Thanks for the question Cosmos, maybe I'll take them.

The overview and pass it on to Joe.

Hum.

The way I would describe it overall when you look at last year's work.

Well, even given the year before we put up the frame around the mill.

Pebble Crusher building.

<unk> installed the cranes.

The planning on the building and all that work came in consistent with our productivity assumptions and overall that work came in line with the feasibility study.

We've been doing additional mark last year in getting the primary crusher moving some preliminary work.

Around the filter building for the tailings and some preliminary work inside the mill building and again all of that work was consistent with our estimates.

George Burns: Thank you for your time. I will now turn it over to the operator for questions from our analysts. Thank you. To join the question queue, you may press star and then one on your telephone keypad. You will hear a tone acknowledging your request. If you are using a speakerphone, please pick up your handset before pressing any keys.

And then we moved into the civil work as much as in a.

Roads open pit mining and beginning to put the infrastructure in four of the tailings embankment.

And again those beds and that work has come in consistent with the past so.

Operator: To withdraw your question, please press star, then two. The first question comes from Cosmos Chiu with CIDC. Please go ahead. Thanks, George and Simon. Congratulations, Paul, and all the best, Joe. Maybe my first question is about Scurious, the CAPEX increase. As you mentioned, a lot of it is due to labor costs. A part of it is due to productivity, and, you know, certainly productivity was a point of discussion when we were on site back in October. But can you give us a bit more color in terms of productivity? What kind of assumptions did you make previously? What kinds of assumptions are you making today in terms of productivity? Maybe as compared to, say, Turkey or Canada or other parts of the world?

We moved into this year, we're really talking about trade work is our electronic shows pipe fitters sort of high higher and.

<unk> and.

And what we found in the beds that were just finalizing and are projected under the remaining beds for that type of work as the rates have gone up and I guess not.

Surprise relative to what's happening globally.

But you know are higher than the other type of work that we've been conducting so far so I would tell you. We're feeling confident now that we've got the right estimates for labor as we move forward to finish this project and I think that largely derisked.

And I'll pass it over to Joe to maybe give you a little color on the various components that led to this $75 million increase all labor related.

Thanks, George first Cosmos, maybe I'll give you a little.

Reminder, on the on the SaaS side, we use the Gulf Gulf Coast Specter labor rate for productivity.

Cosmos Chiu: Thanks for the question, Cosmos. Maybe I'll do a high-level review of it and pass it on to Joe. I mean, the way I would describe it overall, when you look at last year's work, you know, we, well, even the year before, put up the frame around the mill and the Pebble Crusher building, installed the cranes, put the cladding on the building, and all that work came in consistent with our productivity assumptions. And overall, that work was in line with the feasibility study. We've been doing additional work last year in getting the primary crusher moving, some preliminary work around the filter building for the tailings, and some preliminary work inside the mill building, and again, all that work was consistent with our estimates. And then we moved into the civil works, which is, you know, roads, open pit, mining, and beginning to put the infrastructure in for the tailings and bank.

<unk> five and as George said that Hill.

Consistently through 2022 2023, as we've gotten into the trades.

Yes.

In the proposals.

Contracts that we have entered into.

That's closer to 1.5.

Slightly under $1 five is where the productivity factor would calculate.

So it's up.

Up a bit.

We also had a modest increase in.

Quantities moving from feasibility.

Level of engineering to detailed engineering.

That's a smaller factor then and productivity.

But as George said, we're feeling pretty comfortable.

That.

Through diligent work through these.

Contracts with these proposals and working to contract with.

Yeah.

Contractors, we are.

Doing diligent review of their work plans.

Making certain theres solid understanding and that we.

Understand where they've gotten to their productivity is.

How they've gotten to their labor how they expect to deliver so we're quite confident that the time taken in doing that leads us to.

George Burns: And again, those bids and that work have come in consistent with EFS. So as we move into this year, we're really talking about trade work. These are electricians, pipe fitters, sort of higher-end labor.

And executable and executable plan so.

You know I'll, just echo, what George said, where our confidence level is up for execution moving forward.

Yeah.

Higher labor rate.

Great. Thanks, Joe.

George Burns: And what we found in the bids that we're just now finalizing and have projected into the remaining bids for that type of work is that rates have gone up. And I guess that's not a big surprise relative to what's happening globally, but higher than the other types of work that we've been conducting so far. So, I tell you, we're feeling confident now that we've got the right estimates for labor as we move forward to finish this project. And I think that largely de-risks us.

And maybe if you can help me with the numbers here I just want to make sure. My numbers are correct. As you said, our Capex has increased to a total of $920 million.

I know you said you spent $153 $8 million in 2023.

Additional 375 million to $125 million in 'twenty 'twenty, four and I'm just trying to figure out how much has been spent so far I'm just curious and how much of the nine 'twenty is going to be spent in 2024 and how much of that is going to be spent in 2025.

Yes Cosmos.

George Burns: And I'll pass it over to Joe to maybe give you a little color on the various components that led to this $75 million increase, all labor related. Thanks, George. First, Cosmos, maybe I'll give you a little reminder on the FAA site. We use the Gulf Coast factor labor rate or productivity rate of 1.35. And as George said, that held consistently through 2022-2023. As we've gotten into the trades, in the proposals, and contracts that we have entered into. That's closer to 1.5; slightly under 1.5 is where the productivity factor would calculate, so it's up a bit.

The new totals 920.

Through the end of last year, we spent 184.

And we have 735 left to spend against that by in 'twenty and then we've given you a guidance range for this year.

Understood great.

I mean, what maybe one last question George you know to start off the presentation. Today, you mentioned the unfortunate event that happened Oh, sorry, sorry.

Winning.

The heap Leach.

Right.

Your operations are in a separate part of the country, so totally understand that.

Just wondering if you've seen any kind of indirect impact to your operations I know at least there's an indirect impact in your share price, but other than that any other indirect impacts and have you seen any kind of changes in the overall sort of regulatory filings.

Thanks for that question.

Yeah, I mean as you would.

Expect on the tragedy of this sort occurs the regulators are going to be paying attention. So we get regular inspections at both of our operations throughout the year.

Joe: We also had, you know, a modest increase in quantities, moving from feasibility level engineering to detail engineering, and that's a smaller factor than productivity. But, as George said, we're feeling pretty comfortable that through diligent work through these contracts or these proposals and working to contract with contractors, we are doing diligent reviews of their work plans, making certain there's solid understanding and that we understand where they've gotten to with their productivity, how they've gotten to with their labor, how they expect to deliver, so we're quite confident that the time taken in doing that leads us to an executable plan. You know, I just echo what George said about our confidence level for execution moving forward, albeit at a higher labor rate. Great Thanks, Joe. And maybe if you can help me with the numbers here, I just want to make sure my numbers are correct.

And there's been a step up in those reviews a sense since the tragedy, we've had no impacts from our operations I.

I would tell you I take great comfort in price and the oversight.

And the way, we operate and maintain our facilities.

Regarding the heap Leach itself, we've been operating for 15 years.

Our operators and maintenance employees do routine inspections throughout the day as we operate and maintain the facility.

We do routine inspections throughout the year.

Our engineering firms that provide us with designs do reviews each year and.

And we've got a very capable technical services group here at head office and so we do our own reviews overall, the you know the technical.

And operating risk.

Cosmos Chiu: As you said, CapEx has increased to a total of $920 million. I know you said you spent $153.8 million in 2023 and an additional $375 million to $425 million in 2024. I'm just trying to figure out how much has been spent so far on Scurious and how much of the $920 million is going to be spent in 2024 and how much of that is going to be spent in 2021.

Face and a Miami business like ours, and so and I would say one other thing that we do we have an independent technical group and these R&D engineers that design in and kind of look over our operating our operations, but an independent group that comes through periodically.

Does an independent review and so we have a lot of layers of protection to manage the critical risk.

Is any mining operation face in and so I feel like we're in good shape here, we stand ready to understand any key learnings that will come out of this strategy.

Quality appropriate reactions. If there are any pertinent to our business. So no impact on our business today regulators as inspector take kind of look at all the mines and we don't expect any impact to our business.

Cosmos Chiu: Yeah, Cosmos, so the new total is $920,000. Through the end of last year, we've spent $184,000, and we have $735,000 left to spend against that $920,000, and then we've given you a guidance range for this year, under. George, you know, to start off the presentation today, you mentioned the unfortunate event that happened at FSR Online, at the Heath and Leach, the Slip. Your operations are in a separate part of the country, so I fully understand that. I'm just wondering if you've seen any kind of indirect impact on your operations. I know at least there's an indirect impact on your share price, but other than that, any other indirect impacts?

Yeah.

Great. Thanks, George that perfectly answers my questions.

Have a good weekend and that's all I have.

Thanks Cosmos.

Once again, if you have a question. Please press Star then one.

The next question comes from Tanya Drkoop connect with Scotiabank. Please go ahead.

Great. Good morning, everyone. Thank you so much for taking my question, maybe just someone can help me on the progression of the year first I think Simon gave us some details on that.

And then Georgia yourself did on the.

The first half is going to be weaker in.

Q1 was going to be weaker than Q Karoo.

I understand I think Olympics is even so can we just get an idea unlimited I think carefully.

Over all in mind looking at that 48% in the first.

52 in the second half.

I know, it's not a science.

George Burns: And have you seen any kind of changes in the overall regulatory environment? Thanks for that question. Yeah, I mean, as you would expect, when a tragedy of this sort occurs, the regulators are going to be paying attention. So we get regular inspections at both of our facilities throughout the year, and there's been a step up in those reviews since the tragedy. We've had no impacts from our operations. I would tell you I take great comfort and pride in the oversight and the way we operate and maintain our facilities. Regarding the heat bleach itself, we've been operating for 15 years.

Sure.

Yeah. Thanks for that question Tanya.

At a high level.

Were softer in the first half with catch like just due to winter weather issues that impact the heap leach.

You would expect.

And then the bulk of the rest of the variability has to do with order rates.

I'll see if Simon can provide you some details on.

Okay.

Thanks, Thanks, Joe.

Yeah. So we typically have winning conditions slightly sluggish in at.

You should add et cetera.

George Burns: Our operators and maintenance employees do routine inspections throughout the day as we operate and maintain the facility. We also do routine inspections throughout the year. Our engineering firms that provide us with designs do reviews each year. And we've got a very capable technical services group here at head office, and so we do our own reviews on all the, you know, the technical and operating risks that you face in a mining business like ours. And so, and I say, one other thing that we do, we have an independent technical group, and these aren't the engineers that design and kind of look over our operations, but an independent group that comes through periodically and does an independent review, and so we have a lot of layers of protection to manage the critical risk that any mining operation faces.

In the first quarter.

As we said.

J crew generally fairly steady through the year.

This quarter, it's our lowest.

Back half weight intensive.

Great.

To.

Well, the Mac, which set of that.

Fourth quarter being at the higher end of that range.

We said in Minnesota.

Six and a half at two seven range, where the first part of it is in a six six and a half range.

Does that help.

Hi, Yeah. It does help I guess, Mr thinking from an overall perspective, you know without having done all of these numbers.

How are we looking at that 48 50 K R. R.

Right.

Not getting that right, yet, but probably more like that it's probably out 45 in the first half to.

<unk> <unk> 55 in the second half a turn yet.

Well, we'd probably saying on a portfolio basis.

That helps to balance your votes.

Thank you for that plan is just trying to get it right because as you know them you know if I find floor isn't most of these mines are aren't going through the year because of grade variability and weather and out there. That's very helpful. Thank you.

George Burns: And so I feel like we're in good shape here. You know, we stand ready to understand any key learnings that will come out of this strategy and deploy the appropriate reactions if there are any pertinent to our business. So, no impact on our business today. Regulators, as you expect, are taking a look at all the mines, and we don't expect any impact on our business.

My second question is maybe to George.

I just wanted to understand you've got to do with salaries.

You mentioned that you know we've got these contracts to outstanding that are going to be finalized.

Cosmos Chiu: Great, thanks George. That perfectly answers my questions, and have a good weekend. Thanks, Cosmos.

And like in Q2. So my question is you know how.

How comfortable are you updating the capital in Q1.

Operator: Once again, if you have a question, please press star then 1. The next question comes from Tanya Jakusconek with Scotiabank. Please go ahead. Good morning, everyone.

When you haven't really finalize these contract until Q2.

Just wondering why you did it now and not wait until these contracts.

Yeah, I'd, just say, we have really good confidence and estimating the contracts that aren't finalized, but we have all the beds and we've been having questions.

Tanya Jakusconek: Thank you so much for taking my question. Maybe just someone can help me with the progression of the year first. I think Simon gave us some details on that, and George, as you solved it in the first half, Q1 is going to be weaker at FM Chukuru. I understand. I think Olympias is even. So can we just get an idea on LAMAC and KISLADAG and then just overall, am I looking at that 48% in the first half, 52% in the second half? I know it's an art, not a science.

The various contractors.

And we do understand through all of the bids submitted so far is that these trades associated work is at a higher cost than we assumed in the U S.

I don't know I think part of that May be driven on there was an uptick in work happening in Greece period end.

So the availability of people and contractors are happening to pay a bit higher rates than we assumed three years ago. When we put this estimate together for that type of work so.

George Burns: Yeah, thanks for that question, Tanya. Yeah, I mean, at a high level, we're softer in the first half with Kisselag just due to winter issues that impact the heat bleach, as you would expect. And then the bulk of the rest of the variability has to do with the work rate, and I'll see if Simon can provide his details on that. Thanks George, yeah so we typically have, you know, with winter conditions, slightly slower conditions in the first quarter. But as we said, FM2Crew, generally fairly steady through the year. The first quarter will be its lowest.

It's just basically.

We're through it.

Negotiations on a few of the contracts.

And the remaining contracts, we've got good visibility from the bids and we still have to finalize which contractor.

Doctor.

I crossed the tea, but we got good visibility of where we're going to land.

Okay.

And those are the two major contractor then you have 80% cap.

It's secured 80% of that.

Right.

Yeah, we have and then I mean, maybe just a little bit clearer. So the bids that we have that we're basing. This estimate are firm bids we haven't signed the contracts and necessarily awarded it but that's why we're feeling confident these are firm bids.

Simon: We are back halfway there in terms of... grades are coming into LATMAC with sort of a for being at the higher end of our range, that we said in Missouri, at six-and-a-half to seven range where the first part of the year is in the six to six-and-a-half range. So, does that help? Hi, yes, it does help.

Okay.

And maybe just to come back to Joe. Thank you Frank you know bring up the productivity.

Tanya Jakusconek: I just was just thinking from an overall perspective, you know, without having done all of these numbers, are we looking at 48, 52 or or my getting that right. Yeah. But probably more like a... probably about 45 in the first half to 55 in the second half, but Tanya, that's, Well, we're probably seeing on a portfolio basis if that helps to balance you all. Yeah, no, it's just thank you for that, Simon.

You know number isn't for a name ma'am you know like myself I guess I'm trying to understand that 1.35.

The 1.5, that's an 11%.

So should I be thinking that your productivity has declined by you've assumed a 10% decline in productivity.

Like I'm, just trying to understand how to use that information you provided me.

George Burns: It's just trying to get this right, because as you know, divide by four isn't how most of these mines are going through the year because of great variability and weather and other things. So that's very helpful. My second question is maybe to George.

The 10% is not unreasonable.

As George stated for the overall project, it's less than that because of the earthworks and early awards were more in line with Ah.

Tanya Jakusconek: I just wanted to understand what you're doing with SCORI. You mentioned that, you know, we've got these contracts too outstanding that are going to be finalized, too. So my question is... You know, how comfortable are you updating the capital in Q1? You haven't really finalized these contracts. I just wondered why you did it now and not waited until these contracts were done.

Feasibility assumptions, but the the later work in the.

Crafts are a bit.

Okay.

Lower productivity that we saw but I think.

Generally we're comfortable with that execution within those productivity is he was quite reasonable land.

We're working as well around.

Yeah.

Performance management through.

Target prices and.

George Burns: I'd just say we have really good confidence in estimating the contracts that aren't finalized, but we have all the bids in. We've been having questions with the various contractors. And we do understand from all of the bids submitted so far that these trades associated work is at a higher cost than we assumed in the FS. And I don't know, I think part of that may be driven by there being an uptick in work happening in Greece, period.

Productivity.

The incentives. So I think there are we're quite comfortable that will come in.

And I also would just mentioned that.

We do have.

Oh good.

Price protection and the contracts that we have and will have in the those to be awarded as well.

So there's no escalation of labor of any kind in the <unk>.

For the duration of the project.

Okay. So if we work with.

George Burns: And so the availability of people and contractors is having to pay higher rates than we assumed three years ago when we put this estimate together for that type of work. So our confidence is basically that we're through negotiations on a few of the contracts, and for the remaining contracts, we've got good visibility from the bids, and we still have to finalize which contractor and, you know, dot the I, cross the T, but we have good visibility of where we're going to land. Okay, and those are the two major contractors. You've already secured 80% of that spend. Yeah, we have, and maybe to be just a little bit clearer, the bids that we have that we're basing this estimate on are firm bids. We haven't signed the contracts and necessarily awarded them, but that's why we're feeling confident these are firm bids. And maybe just to come back to Joe, thank you for, you know.

Would we be assuming correctly.

Okay.

Were comfortable and M. D. As you know contracted season I saw that you know final big.

It's protected.

The two larger ones and then the assumptions on the productivity.

Something less.

Trying to find a rig.

You could buy something just slightly under 10% that would be correct.

That'd be reasonably reasonably accurate.

Okay and can I ask just one final question before I, let someone else now.

I'm interested in how you are progressing on you've got to increase that employment on site from now until they go into production, but can I just ask how that is going and I know I asked that on site.

Was there an October but I'm just trying to see you know how that is going in.

You know labor costs, and looking on that front as well.

Yeah go ahead Joe.

Thanks, Thanks, Tanya, so where we stand today.

Tanya Jakusconek: Thank you for joining us. Thank you. Thank you, um, you know numbers and for a layman like myself, I just want to understand that 1.35 going to close to 1.5, that's an 11 percent increase. So should I be thinking that your productivity has declined by you've assumed a 10% decline in productivity in the numbers going forward? I'm just trying to understand how to apply that information you provided. That 10% is not unreasonable, Tanya.

We have mobilized the leadership team for I'm, just curious operations.

We have about 40 people.

On boarded.

To date.

And we'll continue with that that progress, we basically broke it into.

Four phases, the first phase to be completed by the end of 'twenty three was to get the leadership team on board we've completed that.

Through Q2, we will be bringing in the second level of management and let's call. It.

Joe: As George stated, for the overall project, it's less than that because of the earthworks, and early awards were more in line with feasibility assumptions, but the later work and the crafts are a bit... a bit lower productivity than we saw, but I think, generally, we're comfortable that execution within those productivity levels is quite reasonable, and we're working as well around performance management through, you know, target prices and productivity incentives. So I think there are, we're quite comfortable that it will come in. And I also would just mention that, you know, we do have good price protection in the contracts that we have and will have in those to be awarded as well. So there's no escalation of labor of any kind for the duration of the project. Okay, so if we were to, you know, would we be assuming correctly if we said, OK, so you're comfortable with these contracts because these are final bids? Price protected on these two larger ones, and then the assumptions on the productivity are something less, you know, you've declined it by or reduced it by something just slightly under 10 percent.

Key technical people and were advancing on that front as well and that's in the range of another.

33.

<unk> 30, 35 people phase III starts us into <unk>.

Supervision and.

So that's about another 50 and then.

We will begin the direct hire process in phase four and.

We have about right now.

500, 500 applicants on file and.

Working through those.

Yeah.

Each and every day, so we're feeling reasonably good about that.

We have also completed.

<unk>.

Hey, good operational readiness review and we're looking to kind of turnover assets sequentially sequentially is available so the.

<unk>.

Open pit and underground works.

Dissipate those.

Operationalized in 2020 for taking a bit of pressure off and as.

Tanya Jakusconek: Would that be correct? That would be reasonably accurate. Okay. And can I ask just one final question before I let someone else ask it? I'm interested in how you're progressing; you've got to increase the employment on site from now until you go into production. Can I just ask how that is going? And I know I asked that in the interview. Thank you. It is there in October, but I'm just trying to see how that is going and how labour costs are looking on that front as well. Go ahead, Joe.

As far as.

Labor and.

Labor available for open pit is good we'll be contracting the underground.

And then.

As we move into 2025, we'll be hiring.

Remaining staff for process facilities filter plan the rest of it.

That is.

About the.

The range of 200.

So.

Feeling pretty good about all of it as far as costs.

We don't anticipate it to be.

Materially different in any way from.

What are current labor rates for operations are in Greece.

Joe: Thanks. Thanks, Tanya. So where we stand today. In Kenya, we have mobilized the leadership team for SCRIUS operations. We have about 40 people on board to date, and we'll continue with that progress. We basically broke it into four phases, and the first phase to be completed by the end of 23 was to get the leadership team on board. We've completed that. Through Q2, we will be bringing in the second level of management and, let's call it, key technical people, and we're advancing on that front as well, and that's in the range of another 30 people. 30, 35 people attended.

Okay. That's a joke about maybe 100 people from now until you have to hire any additional lines.

People that starting in 2025 or maybe another 100 people or so in 'twenty 'twenty four.

Yes.

That's reasonable.

Okay.

Great. Thank you so much for explaining it to me I appreciate it.

Yeah.

Thanks Tanya.

Once again, if you have a question please press star one.

Yeah.

Thanks, Danielle more questions in the queue.

On the call to the presenters.

Joe: Phase three starts us into supervision, and that's about another 50. And then we'll begin the direct hire process in phase four. And right now, we have about 500 applicants on file and are working through those, you know, each and every day.

For closing remarks.

And thanks, everybody for joining the call look forward to giving you an update at the end of Q1.

[noise] weekend.

This concludes today's conference call you may disconnect. Your lines. Thank you for participating and have a pleasant day.

Joe: So I am feeling reasonably good about that. We have also completed a good operational readiness review. And, you know, we're looking to kind of turnover assets sequentially as available. So the Open Pit and Underground Works. We anticipate those operating in 2024, taking a bit of pressure off and, you know, as far as labor and the labor available for open pit is good. We'll be contracting the underground, and then as we move into 2025, we'll be hiring remaining staff for process facilities, filter plants, the rest of it, and that is about in the range of 200. So, you know, feeling pretty good about all of it as far as cost is concerned. We don't anticipate it to be materially different in any way from what our current labor rates for operations are in Greece.

Okay.

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Joe: Okay, and so Joe, it's about maybe 100 people from now until you have to hire the additional, and a lot of other people starting in 2025, so maybe another 100 people or so in 2024. Yeah, that's reasonable. Great, thank you so much for explaining it to me, appreciate it. Thanks, Tanya. Once again, if you have a question, please press star and 1, there. If there are no more questions in the queue, I'd like to send the calls to the presenters, for closing remarks. Yeah, thanks everybody for joining the call. Look forward to giving you an update at the end of Q1. Have a great weekend. This concludes today's conference call. You may disconnect your lines. Thank you for participating and have a pleasant day. ?? ?? ?? ?? ?? ?? ?? www.larryweaver.com, ? ? ? ? ? ? ? ?

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